Various financial companies offer home loans to Indian consumers. In order to assist you with a customized plan to match your specific home loan needs, banks now offer customized plans to assist you with all your home loan needs.
In this article, we’ll discuss What are different forms of Home Loan available in India. Below is the complete list.
Purchase of a home loan
Buying a home with this type of loan is the most popular loan option. Most major banks offer home loans, including SBI, HDFC, ICICI, PNA, and Axis Bank.
Home loans are available for 75-85 percent of the value of the house. We have all the information about house purchase loans right here.
Home improvement loan
Banks provide home improvement loans to borrowers who wish to extend, repair, or renovate their existing homes. It may be possible for the borrower to use the loan proceeds to improve a home’s exterior or interior.
For house additions, some banks offer special financing dubbed home extension loans. There are home improvement loans available from all major banks in India.
80-90 percent of the estimated cost of the work can be obtained.
Construction loan for a home
An individual seeking financing to build a new home may apply for a home building loan. In addition to the constant interest rates, there are no differences in the application process or interest rates.
Home conversion loan
When a buyer already has a mortgage and needs funds to purchase another home, he or she may be eligible for a home conversion loan. Upon taking on the new loan, the former loan’s outstanding balance is transferred.
Loans of this type are usually taken out by people who want to avoid prepaying a previous loan. The interest rate on second home loans may be higher than on new house loans, depending on the lender’s policy.
Land acquisition loan
Individuals who are interested in acquiring land to build a home or invest in it use this type of loan. *(Agriculture land is not permitted with this loan.)
All major banks in India offer this loan. It typically takes a land loan between five and fifteen years, much less than a mortgage. You will also have a higher EMI.
Lenders typically limit credit limits on land loans to between 60% and 75% of the value of the property. A down payment of about 30% – 35% is required. Most land loans carry an interest rate similar to that of a home loan.
Customers who want to sell and buy a residence can take advantage of these tailored loans. The purpose of this loan is to bridge the financial gap between the purchase of a new property and the sale of the previous home.
It is a short-term loan that can be secured by the sale of one property and the purchase of another. The interest rate on this loan is slightly higher since it is a short-term loan.
The bank will require information about your new property before you can qualify for the loan. A bank may transform this type of loan into a mortgage loan if you do not sell your old house within six to twelve months.
Equity loan for a home
Purchasers can benefit from market-low interest rates by transferring balances from one home loan to another. Banks in India are not required to pass on lower interest rates to existing customers, a circumstance which makes balance transfers attractive to borrowers.
This type of mortgage entails existing homeowners to transfer their mortgage from one bank to another in order to get a lower interest rate. Home buyers who already have a mortgage can utilize balance transfer home loans to ease their load.
Stamp duty loan
In order to aid buyers in paying stamp duty when they register their property, banks offer stamp duty loans. Getting a reverse mortgage loanAn initiative that seeks to assist seniors financially is relatively new in India.
The bank determines the borrower’s current market value before disbursing the loan amount via periodic repayments under reverse mortgage loans. The equity of the property is decreased each time the borrower makes a payment.
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